Cover puts finances in far poorer health
ANNUAL increases to health insurance premiums are causing Australian families pain, with new research revealing that after mortgage or rent, private health insurance is the most expensive cost to 27 per cent of households. Meanwhile, private health is among the top three most expensive bills for 71 per cent of households and in top five for 91 per cent. Commissioned by comparethemarket. com. au, the survey canvassed 1000 Australians with health insurance, after 34 private health insurers increased their premiums on April 1, some by as much as 8 per cent. The hikes added pressure to some already struggling household budgets, the site’s spokeswoman Abigail Koch said.
Australians over 65 were hit the hardest, with 44 per cent naming private health their most expensive household bill.
“If Australians do cut back or drop their cover, they need to be prepared to pay more or possibly face longer waiting times if they fall sick or get injured,” Ms Koch said.
Health customers will change providers if they see value. There has been strong interest in a One Big Switch campaign, which secured a $ 500 cashback deal for customers who change their health cover to HCF.
The campaign has attracted 71,000 registrations ahead of its June 30 end date, with 34,559 of these seeking a follow- up quote; proof that plenty of people are shopping around.
Mother- of- two Freya Pavlovic recently dropped her family’s hospital cover after the bills became too expensive.
“I was very stressed, so I said ‘ we’re dropping it for the moment’,” Ms Pavlovic said.
“When I had my daughter, I was paying $ 90 a fortnight. Now she is 10 and I was paying $ 349 a month, so it has almost doubled.”
“We hadn’t put in a claim on hospital cover for four years and didn’t have room financially to keep paying. We’re looking at comparison websites to see what’s out there.”
One Big Switch director of campaigns Joel Gibson said the cost of health cover had effectively doubled over 12 years. “Health insurance is fast becoming a luxury, but people feel they can’t afford not to have it,”
he said.